(BQ) Ebook Marketing 3.0: From products to customers to the human spirit - Part 2 presents the following content: Chapter seven: delivering socio-cultural transformation, chapter eight: creating emerging market entrepreneurs, chapter nine: striving for environmental sustainability, chapter ten: putting it all together.
PART III APPLICATION CHAPTER SEVEN Delivering Socio-Cultural Transformation MARKETING TO THE POST-GROWTH MARKET A maturing market always poses a challenge for marketers There is little or no growth Existing consumers are knowledgeable and begin to see products as commodities Creative companies differentiate themselves in this market with great service and exciting experience All of those may fuel market growth for a while but they will eventually be commodities as well Marketers need to step up and deliver transformation.1 Transformation lasts longer as it makes a stronger impact on human lives In mature markets such as the United States and the United Kingdom, an increasing number of consumers favor companies whose activities have a positive socio-cultural impact Consider the following from recent surveys r For the past 15 years, surveys by Cone have consistently shown that 85 percent of American consumers have positive images of companies that support social challenges Even in difficult times, more than half of 121 122 APPLICATION the consumers still expect companies to support social challenges.2 r Even during the recession, 38 percent of Americans were undertaking socially-conscious activities in 2009.3 r The majority of consumers in the United Kingdom (93 percent) want companies to improve the social impact of their products and services, according to a survey by Ipsos Mori.4 Companies need to address the challenges in society and participate in finding solutions In the United States, profound social issues include wellness, privacy, and job losses due to offshoring The challenges have been around for years Everyone knows them and yet no one would expect any corporation to be able to solve them overnight Being a marketer in the 3.0 era is not about single-handedly creating change but about collaborating with other companies to find creative ways to solve problems Two forces oblige companies in a mature market to support a transformation These are the need for future growth and the call for strong differentiation The following two examples show why transforming consumer lifestyles can stimulate growth and create strong differentiation Need for Future Growth: Disney on Children’s Nutrition The Walt Disney Company primarily focuses on entertainment Besides its theme parks, Disney is the world’s biggest character franchisor—Mickey Mouse, Donald Duck, Winnie the Pooh and many others—with a comfortable lead against other well-known character owners such as Warner Bros and Nickelodeon Recently, Disney acquired one of its competitors, Marvel Comics, for $4 billion to strengthen its position in the character franchise market.5 Besides the focus on entertainment, the company also leverages its access to children by selling consumer products Delivering Socio-Cultural Transformation 123 In this particular business area, it addresses consumer wellness challenges—obesity specifically—and builds the issue into its business model.6 Disney Consumer Products (DCP) is trying to transform the eating habits of children in collaboration with several partners In 2004, DCP learned from a UNICEF report that over 30 percent of U.S children between and years old were overweight and 14 percent were obese DCP itself was not seen as a major contributor to this problem but was spotlighted because one of its franchisees was McDonald’s, which was perceived as a key contributor to child obesity in the United States To help in the growing health awareness among children and their moms, DCP designed a set of nutrition guidelines called “better for you” which was adapted from the guidelines set by the U.S Food and Drug Administration (FDA) The internal guidelines outline a basic formula for Disney’s franchisees to produce healthy foods DCP applied the guidelines to Imagination Farms, its franchisee for fresh produce It also collaborated with Kroger, one of the largest supermarket chains in the United States, to develop Disneybranded private label products based on the guidelines Today, DCP contributes around percent of the entire Disney business conglomerate’s revenues and is part of the global solution for obesity.7 The company’s move is a strategy to anticipate the emerging trends of health conscious consumers The best strategy is to engage the future consumers: the children Connecting with them early in their lives will help Disney capture future growth in the mature market Call for Strong Differentiation: Wegmans on Healthy Living As a category killer, Wal-Mart poses a great threat to supermarkets The only differentiation that other grocers rely on is the spatial differentiation due to their more convenient store locations That differentiation is now relatively weak after Wal-Mart’s move into neighborhood markets Without 124 APPLICATION stronger differentiation, grocers will have difficulty justifying their higher prices and competing against Wal-Mart’s everyday lower prices To cope with this challenge, several grocers have worked to build up their differentiation and, in the process, transform the lifestyles of their consumers Wegmans Food Markets is one example A privately-owned supermarket chain that promotes a healthy lifestyle, Wegmans is rated one of the best companies in Fortune magazine’s annual survey of best companies to work for.8 It supports its employees in developing healthy lifestyles Wegmans is also considered one of the best in merchandising and creating comprehensive in-store experiences with its supplementary pharmacy, wine shop, video rentals, dry cleaner, bookstore, and child play area The store’s retail floor productivity is above average and its operating margin is better than that of Wal-Mart and even Whole Foods Wegmans has popularized the concept of “home meal replacement” by providing healthy and tasty prepared foods It promotes the “eat well, live well” principle, which is a combination of eating fruits and vegetables, doing physical exercise, tracking calories, and measuring progress on a health index Wegmans believes that health is highly correlated with nutrition and that promoting a healthy lifestyle contributes to the community and is good for its business Along with other grocers such as Whole Foods, the company is creating gamechanging rules for the industry As consumer health awareness increases, other grocers are using the issue of health as a differentiator Even Wal-Mart is forced to address the issue of health in its marketing activities Stronger differentiation on the part of other grocers reduces Wal-Mart’s ability to be a category killer in the grocery segment.9 FROM PHILANTHROPY TO TRANSFORMATION More businesses are addressing social issues through philanthropy Companies donate a portion of their revenues to charities or a specific social cause Education is known to be the Delivering Socio-Cultural Transformation 125 favorite object for philanthropy in which 75 percent of companies are participating.10 Although the donations will help a good cause, many companies use philanthropy primarily to improve their reputation or get a tax deduction Philanthropy is not limited to the mature markets in the West In emerging markets, philanthropy is even more popular Merrill Lynch-Capgemini finds that Asia’s millionaires committed 12 percent of their wealth for social causes, while millionaires in North America only contribute percent and those in Europe percent.11 Although philanthropy helps society, we should never overestimate its socio-cultural impact Recent growth in philanthropy is driven by the changes in the society People are more concerned about other people around them and are more willing to give back to society Even in a recession, 75 percent of Americans still donate to a social cause, according to a Gallup poll.12 But philanthropy does not stimulate transformation in the society Transformation in the society drives philanthropy That is why addressing social issues with philanthropic activities will have a rather short-term impact A more advanced form of addressing social challenges is cause marketing—a practice where companies support a specific cause through their marketing activities The American Express Company first used cause marketing when it wanted to help raise money for the repair of the Statue of Liberty The company said that it would donate percent of the charges to its credit card to the repair fund Many Americans responded by charging their purchases to the American Express Card instead of Visa or MasterCard In cause marketing, companies direct their energy, not just their money, to address the cause They start to link the cause to their products For example, Quaker launched a campaign against hunger as an effort to promote the health benefit of oatmeal.13 A number of actions will be carried out including food drives, grants for social activities, and oatmeal donations Haagen-Dazs’ “Help the Honey Bee” program aims at preserving colonies of honey bees and positions honey bees as an important source of food supply, especially for making 126 APPLICATION ice cream.14 Through social media, consumers are encouraged to plant flowers and eat natural foods to help the bees Two groceries, Waitrose in the United Kingdom and Whole Foods in the United States, are practicing cause marketing.15 Every time consumers shop, they will be handed a token, which they can insert into any local charity box they want At the end of the campaign, the tokens in each box will be exchanged for cash and donated to the designated charity Many philanthropic companies have chosen to support a specific cause that appeals to their specific consumers or employees The Avon Corporation has helped raised over one hundred million dollars to support breast cancer research.16 Clearly, its customers are primarily women and Avon wants to help in this cause that is primarily associated with women Motorola is generous in supporting major engineering schools Motorola profits from improved teaching and research in engineering schools in that they hire many engineers.17 Philanthropy and cause marketing have been gaining popularity in recent years A global survey by Edelman suggests that 85 percent of consumers prefer socially responsible brands, 70 percent will pay more for the brands, and 55 percent will even recommend the brands to their family and friends.18 Companies are aware of this fact They are increasingly recognizing that their employees, consumers, and the public at large develop a view of a company not only based on the quality of its products and services but also on its degree of social responsibility A majority of business executives around the world (95 percent) acknowledged that business has to contribute to society.19 They predicted that demand from consumers and employees to support social causes will influence their strategy in the next five years Today, both philanthropy and cause marketing are still working but they are not used strategically They are often only part of a public relations or marketing communications strategy Therefore, they are not shaping the view of top-level executives and how executives run their businesses Delivering Socio-Cultural Transformation 127 Corporate executives still see social causes as a responsibility instead of an opportunity to create growth and differentiation Another issue is that company philanthropy may lead to some consumer involvement but doesn’t tend to empower or transform them Their lifestyles stay the same Empowerment means self-actualization It is about allowing your consumers to move up the Maslow pyramid and fulfill their higher needs Creating transformation is the ultimate form of marketing to the mature market In Marketing 3.0, addressing social challenges should not be viewed only as a tool of public relations or as a way to diffuse criticism of some negative fallout from the company’s practices On the contrary, companies should act as good corporate citizens and address social problems deeply within their business models Some companies can strengthen their impact by moving from philanthropy and cause marketing campaigns into socio-cultural transformation (see Figure 7.1) Socio-Cultural Transformation Creativity Spectrum Self-Actualization Cause Marketing Basic Needs Philanthropy Vertical Company Empowered Horizontal Consumer Empowered Collaboration Spectrum Figure 7.1 Three Stages of Addressing Social Issues in Marketing 128 APPLICATION Socio-cultural transformation sees consumers as human beings who should be empowered to move up the Maslow pyramid It is more relevant to companies not only at the product level but also at the business model level By utilizing the power of collaboration, it can lower cost and create higher impact THREE STEPS TO TRANSFORMATION Delivering socio-cultural transformation involves a three-step process that begins with defining which challenges to address (see Figure 7.2) Once specific challenges are chosen, a company should define its key constituents who mainly include its target market and the surrounding stakeholders and community where it does business The final step is to offer transformational solutions Identify Socio-Cultural Challenges A company should choose to promote issues based on three criteria: the relevance with its vision-mission-values, the business impact, and the social impact Identify SocioCultural Challenges — Identify current and predict future challenges — Challenges may include wellness (nutrition and health care), education, or social injustice Select Target Constituents — For immediate impact: select constituents such as the middle class, women, or the elderly — For future impact: select children and youth Offer Transformational Solution — Provide behavior-changing solutions moving up the Maslow Pyramid — Aim toward more collaborative, cultural, and creative transformation Figure 7.2 Three Steps of Creating Socio-Cultural Transformation Putting It All Together 175 To improve the health of the local community, Unilever uses its global capability With experience in consumer product marketing, Unilever brings affordability through sachet marketing The backbone of this effort is Unilever’s application of its expertise in supply chain to reduce the distribution costs This project specifically targets Goals 1, 2, and of the MDGs.13 Another example is Procter & Gamble’s effort to provide safe drinking water Like Unilever, the company is equipped with expertise in sachet marketing With its proprietary watertreatment technology, the company delivers safe water around the world Interestingly, the technology is in a size of a sachet to ensure affordability Local people can pour the content of the sachet to clean 10 liters of water for drinking With this effort, the company is helping the world to achieve Goals 5, 6, and 10 of the MDGs.14 Set fair prices to reflect your quality CREDO 6: ALWAYS MAKE YOURSELF AVAILABLE, SPREAD THE GOOD NEWS Don’t make it hard for customers who are looking for you to find you In today’s global knowledge economy, access to information technology and the Internet is imperative But the digital divide—the socio-cultural differences between those who have access to digital technology and the Internet and those who don’t—is still a challenge around the world Companies that can straddle the divide will grow their consumer base Since 2005, Hewlett-Packard has been trying to bridge the divide by collaborating with partners across sectors to bring information technology to developing nations.15 In pursuit of growth, the company targets the low-income communities as its future market In the process of market creation, it progressively bridges the digital divide and provides poor people with access to technology These consumers are the hope for companies in mature markets that seek growth Help your would-be customers find you 176 APPLICATION CREDO 7: GET YOUR CUSTOMERS, KEEP AND GROW THEM Once you have a customer, keep up good relations with them Get to know your customers personally, one by one, so you have a complete picture of their needs and wants and preferences and behavior Then grow their business These are the principles of customer relationship management (CRM) It is about attracting the right customers who will keep buying from you because of deep rational and emotional satisfaction They are also capable of becoming your strongest advocates through word-of-mouth marketing PetSmart Charities has saved the lives of millions of homeless pets through its in-store adoption centers.16 The program brings visitors to the stores and improves the sales of PetSmart products While helping the pets, the company attracts new customers and cross-sells to them at the point-of-sale Because the company demonstrates its care for pets, consumers will be touched and become loyal Look upon your customers as customers for life CREDO 8: WHATEVER YOUR BUSINESS, IT IS A SERVICE BUSINESS Service businesses are not limited to hotels or restaurants Whatever your business, you must have a spirit of wanting to serve your customer Service must become a service provider’s calling, and never be considered a duty Serve your customer sincerely and with complete empathy, as they will assuredly then carry away positive memories from this experience Companies should understand that their corporate values, expressed through their products and services, should have a positive impact on people’s lives Whole Foods sees its business as service to consumers and service to society That is why the company tries to transform the lifestyles of consumers into healthier ones Moreover, it is practicing the sense of service to employees as well by letting them vote on the company’s strategic direction Putting It All Together 177 Every business is a service business, because every product delivers a service CREDO 9: ALWAYS REFINE YOUR BUSINESS PROCESS IN TERMS OF QUALITY, COST, AND DELIVERY The task of marketers is to always improve quality, cost, and delivery (QCD) in their business processes Always meet all your promises to customers, suppliers, and to your channels, too Never engage in deceit or dishonesty with regard to quality, quantity, delivery time, or price S.C Johnson is well-known for doing business with local suppliers It works with local farmers to improve productivity and delivery To maintain a sustainable supply of Pyrethrum, for instance, the company engages the local farmers in Kenya In partnership with KickStart and the Pyrethrum Board of Kenya, the company helps the farmers with irrigation Farmers achieve higher productivity with new irrigation pumps and therefore can better supply S.C Johnson Furthermore, the farmers get additional income because the pump enables them to plant other crops While improving the supply chain of the company, S.C Johnson contributes to Goals 1, 2, and of MDGs directly and indirectly.17 Every day, improve your business process in every way CREDO 10: GATHER RELEVANT INFORMATION, BUT USE WISDOM IN MAKING YOUR FINAL DECISION This principle cautions us to continually learn, learn, and learn Your accumulated knowledge and experience will be what determines the final decision you make Supported by his or her maturity of spirit and clarity of heart, a marketer will then be able to swiftly make decisions based on the wisdom that they inherently have An interesting story about Hershey Foods in The Triple Bottom Line by Andrew Savitz and Karl Weber describes this.18 In 2001, the board members of Hershey Trust considered selling its stake in Hershey Foods because of the emergence 178 APPLICATION of a powerful competitor in the market and a likely future large increase in the price of cocoa From a financial perspective, these would decrease the value of the trust fund that the board maintained To guard its pursuit of maximum shareholder value, the board of trustees sold its entire stake to Wrigley To the board’s surprise, a group of angry employees refused this acquisition They rallied and then gathered on Chocolatetown Square to protest the sale The board finally realized its decision was wrong Financially, the decision was sound However, it was not wise because it didn’t consider the social impact of the decision, especially to the employees Wise managers consider more than the financial impact of a decision MARKETING 3.0: IT’S TIME TO MAKE A CHANGE! Is it possible to be a human-centric company and still be profitable? This book offers a positive answer to this question The behavior and values of a company are increasingly open to public inspection The growth of social networks makes it feasible and easier for people to talk about existing companies, products, and brands in terms of their functional performance as well as their social performance The new generation of consumers is much more attuned to social issues and concerns Companies must reinvent themselves and shift as swiftly as possible from practicing in the formerly safe confines of Marketing 1.0 and 2.0 into the new world of Marketing 3.0 NOTES For more information about MDGs, see www.un.org/millennium goals/ C´ecile Churet & Amanda Oliver, Business for Development: Business Solutions in Support of the Millennium Development Goals, World Business Council for Sustainable Development, 2005 Putting It All Together 179 Donald B Calne, Within Reason: Rationality and Human Behavior (New York: Pantheon Books, 1999) Stephanie Thompson, “Breast Cancer Awareness Strategy Increases Sales of Campbell’s Soup: Pink-Labeled Cans a Hit with Kroger Customers,” AdvertisingAge, October 3, 2006 S´ebastien Miroudot, “The Linkages between Open Services Market and Technology Transfer,” OECD Trade Policy Working Paper No 29, January 27, 2006 Adam M Brandenburger and Barry J Nalebuff, Co-opetition: A Revolutionary Mindset that Combines Competition and Cooperation The Game Theory Strategy that’s Changing the Game of Business (New York: Currency Doubleday, 1996) “Increasing People’s Access to Essential Medicines in Developing Countries: A Framework for Good Practice in the Pharmaceutical Industry,” A UK Government Policy Paper, Department for International Development, March 2005 Martin Hickman, “(RED) Phone Unites Rival Telecom Operators in Battle against AIDS,” The Independent, May 16, 2006 Alex Taylor III, “Toyota: The Birth of the Prius,” Fortune, February 21, 2006 10 Marc Gunther, “The Green Machine,” Fortune, July 31, 2006 11 Tarun Khanna and Krishna G Palepu, “Emerging Giants: Building World-Class Companies in Developing Countries,” Harvard Business Review, October 2006 12 C´ecile Churet & Amanda Oliver, Op.Cit 13 C´ecile Churet & Amanda Oliver, Op.Cit 14 C´ecile Churet & Amanda Oliver, Op.Cit 15 Ira A Jackson and Jane Nelson, Profit with Principles: Seven Strategies for Delivering Value with Values (New York: Currency Doubleday, 2004) 16 Philip Kotler and Nancy Lee, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause (Hoboken, NJ: John Wiley & Sons, 2005) 17 C´ecile Churet & Amanda Oliver, Op.Cit 18 Andrew W Savitz and Karl Weber, The Triple Bottom Line: How Today’s Best-Run Companies Are Achieving Economic, Social, and Environmental Success—and How You Can Too (San Francisco: Jossey-Bass, 2006) INDEX A Abbot, 171 Adams, Scott, 53 AIG, 70, 101 Amazon.com, 58–59, 65, 87, 111 American Marketing Association, 17 American Express, 125 Apple, 35, 59, 60 Aspen Institute, 102 Authenticity, 34, 39–40, 45, 58, 60, 66, 71–72, 78 Avis, 79 Avon, 126 B Baby boomers, 131 Bank Rakyat Indonesia, 142 Base of the pyramid See Bottom of the Pyramid (BOP) Ben & Jerry’s, 77, 91–92, 110 Berlin Wall, 12 BlackBerry, Blog, Body Shop, The, 16, 54, 60–61, 77, 91, 110, 114, 130, 173 Boehringer Ingelheim, 16, 171 Bono, 172 Borden, Neil, 25 Bottom of the Pyramid (BOP), 37, 105, 142, 145 BP, 170 Brand: equity, 114 identity, 34, 36, 39, 45 image, 36–37, 39 integrity, 37, 39 management, 27 Branson, Richard, 35, 61 Brazil, 76 Brazil-Russia-India-China (BRIC), 76 Bristol-Myers Squibb, 171 Buffett, Warren, 102 Butman, John, 104 C Calne, Donald, 170 Campbell Soup, 171 181 182 INDEX Cause marketing, 125–126, 129, 134 Cemex, 148 Challenge plot, 61 Channel partner: as change agent, 93–96 as collaborator, 90–93 as creative ally, 96–98 Channel partnership, 92 Character building, 34 Chicken Soup plot See Connection plot China, 12–13, 76, 88, 130–131, 138, 140, 149 Chopra, Sunil, 87 Chouinard, Yvon, 110 Christensen, Clayton, 19, 105, 140 Cisco, 74, 78, 83, 132 Coca-Cola, 15, 51–52 Cocreation, 10, 32–33 customization, 33 platform, 33 Colgate, 64 Collaborative marketing, 5–12 Collins, James, 80, 101, 103 Communitization, 33–34 Connect and develop, 10–11 Connection plot, 61 ConocoPhilips, 170 Consumer empowerment, 63–66 Consumer-centric marketing See Marketing 2.0 Conversation, 51, 64–66, 114, 139, 148 Corporate brand, 37, 114–115 Covey, Stephen, 34–35 Craigslist, Creative society, age of, 5, 17–21 Creativity plot, 61 Crowdsourcing, Cultural brand, 15–17, 60 Cultural marketing, 5, 12–17 Customer management, 25–26 D David and Goliath plot See Challenge plot Davis, Mellinda, 20 Day, George, 58 Dell, 87–89, 140 Dell, Michael, 88 DeSantis, Jake, 70 Developing country See Emerging market Differentiation, 5, 20, 31, 34–37, 39, 122–124, 127, 132, 146–147, 159, 165, 173 Dilbert, 53 Disney, 122–123 Dolan, Paul, 40 Doughnut principle, 41 Drucker, Peter, 40 DuPont, 110, 153, 154–156 Index E eBay, 9, 61, 65, 87, 111 Education, 129 Emerging market, 76, 125, 140 Emotional marketing, 27 Enron, 69 Enterprise Rent-A-Car, 75 Experience economy, 58 Experiential marketing, 27 Exxon Mobil, 31 F Facebook, Fetzer Vineyards, 40 Flickr, Florida, Richard, 18 Fogel, Robert William, 20 Fonseca, Eduardo Giannetti da, 132 4chan.org, 63 Four Ps, 25–26 Friedman, Lawrence, 92 Friedman, Thomas, 13 G Gates Foundation, 83 Gates, Bill, 54 Gen Y, 131 General Electric, General Motors, 66 Gerstner, Louis, 102 Gilead, 171 Gilmore, James, 34 GlaxoSmithKline, 143, 171 Globalization paradox: age of, 5, 12–17 economic, 14 183 political, 13 sociocultural, 14 Gobe, Marc, 15, 35 Godin, Seth, 7, 33–34 Google, 64, 130 Grameen Bank, 137 Grameenphone, 139, 143 Great Depression, 29, 101 Greenwald, Robert, 156 H Habitat for Humanity, 14 Hart, Stuart, 19 Hasselhoff, David, 12 Heath, Chip, 61 Heath, Dan, 61 Hershey, 177 Hertz, 79 Hewlett-Packard, Hindustan Lever, 95 Holcim, 170 Holliday, Chad, 156 Human, key component of, 34–35 Human civilization, 17 Human spirit, marketing to, 17–21, 34–39 I IBM, IDEO, 75 “I’d Like to Teach the World to Sing,” 15 IKEA, 51 Immelt, Jeff, 59 India, 76 184 INDEX Industrial Revolution, Information age, Information technology, 3, 5, 11, 13, 72, 175 Initial public offering (IPO), 103 InnoCentive, Innovator, 153, 154–156, 157, 158, 159, 160, 161, 165 Internet, 5, 7, 27, 175 Investor, 153, 155, 156–158, 159, 160, 161, 165 iPhone, 7, 59 iPod, 59 ITC, 95 J Jobs, Steve, 35 K Kanter, Rosabeth Moss, 78, 82 Kelleher, Herb, 54 Kelly, David, 83 Kennedy, Ted, 63 Kenya, 37 Kramer, Mark, 77 Krishnan, M S., 32 Kunreuther, Howard, 104 Kutcher, Ashton, L Lee, Nancy, 105 Lee, Scott, 157 Lehman Brothers, 101 Lencioni, Patrick, 71 Liddy, Edward, 70 Linux, Living the brand, 78 Loads of Hope program, 64 M Mac, 59 MacGyver plot See Creativity plot Macintosh, 1984 commercial, 60 See also Mac Maria Yee, 93–94 Market polarization, 104–106 Marketing: definition, 17 evolution of, 27 future of, 34 Marketing 1.0, 3, 5, 26, 30, 178 Marketing 2.0, 3, 4, 5, 27 Marketing 3.0, 3, 5, 12, 14, 17, 20–22, 34, 36, 39, 45, 53, 72, 80, 82, 89–90, 93, 96, 98, 111, 113, 115, 127, 130, 134, 166, 174, 178 Marketing mix, 25, 95, 147, 149 Mark-to-market accounting, 69 Marriott, 78 Maslow pyramid, 19, 83, 127, 128, 133 Index Mass collaboration, 10 Mayo Clinic, 74 McCarthy, Jerome, 25 McDonald’s, 16 McKee, Robert, 59 McNealy, Scott, Merck, 171 Metcalfe, Robert, 64 Metcalfe’s Law, 64 Microcredit See Microfinance Microfinance, 106, 137, 142, 174 Microlending See Microfinance Microsoft, Middle class, 132 Millennium Development Goals (MDGs), 137, 170, 171, 174, 175, 177 Minorities, 132 Mission, 4, 20, 40, 42, 44, 52–53, 63 creating, 53–54 definition, 41 Moot, 63 Motorola, 126 Myners, Lord, 102 MySpace, N Narcissistic leaders, 58 Net Promoter Score, 65 New Coke, 51 New wave technology, 5, 7, 22 Novo Nordisk, 143 185 O O2, 172 Obama, Barrack, 29, 63 Office Depot, 132 Open source, 9, 33, 133 Orange, 172 P Participation, age of, 5–12 PartnerDirect program, 88 Patagonia, 110 Path of Service, 37 Patrimonio Hoy program, 148 Personal computer, 27 Philanthropy, 40, 124, 125, 126 Philips, 170 Pine, Joseph, 34 Pink, Daniel, 17 Porras, Jerry, 103 Porter, Michael, 77 Positioning, 26–27, 30, 35–37, 39, 94, 146, 173 Post-growth, era of, 89 Poverty, 4, 14–15, 19, 62, 95, 105, 107, 132, 137–138, 140–141, 147, 149, 170, 173 Prahalad, C K., 18 Privacy, 122, 130 Procter & Gamble, 10, 11 Product management, 25, 26 Product-centric marketing See Marketing 1.0 Profitability, 42 186 Propagator, 153, 155, 158–159, 160, 161, 166 Pyramid, economic, 137–139 Q Quaker, 125 R Rabobank, 170 Rackham, Neil, 92 Rappaport, Alfred, 102 Recession, 29–30, 62, 122, 125 RED products, 172 Reed, David, 64 Reed’s Law, 64 Reichheld, Frederick, 65 Returnability, 42 Ries, Al, 35 Roberts, Kevin, 35 Roche, 171 Roddick, Anita, 54 Roddick, Gordon, 110 Rotten Tomatoes, Ruff, Richard, 92 Russia, 76 S Saab, 66 Samuelson, Robert, 13 Savitz, Andrew, 177 Schmitt, Bernd, 35 Schoemaker, Paul, 58 INDEX Schultz, Howard, 35 S.C Johnson & Son, 37–38, 80–81, 170, 177 Segmentation, 27 Seven Giants, 61 Shareholder, types of, 102–103 Short-termism, financial, 101–102 Shriver, Bobby, 172 Sierra Club, 14 Silverstein, Michael, 104 Smile program, 64 Social Business Enterprise (SBE), 141 Social justice, 130, 131 Social media: collaborative, 9–12 expressive, 7–9 Speth, James, 89 Spiritual marketing, Starbucks, 35 Stiglitz, Joseph, 13 Story: characters, 60, 61 metaphors, 60, 61–62 plot, 60, 61, 62 Storytelling, 59–63 Strategic foresight, 54 Subway, 129 Sun Microsystems, Sustainability, 42 business case, 111–115 definition, 104 environmental, 42, 106, 107, 109, 153, 170 Index indices, 109 and shareholder value, 107–110 T Targeting, 27 Technorati, Terez, Tom, 76 Tesco, 172 3M, 75 Tiananmen Square, 12 Tichy, Noel, 59 Tide, 64 Timberland, 37–38, 44–45, 153, 158–159 T-Mobile, 172 Toyota, 156, 172 Trading down See Market polarization Trading up See Market polarization Transformation economy, 59 Trendwatching, 10 Tribalism, 33 Triple bottom line, 43 Trout, Jack, 35 Twitter, U Unilever, 77 V Value, Attitude, and Lifestyle Study (VALS), 145, 162, 164 187 Values, 4, 20, 40, 42, 43, 44 creating, 72–75 definition, 41 types of, 71–72 Vigilant leaders, 58 Virgin, 35 Virgin Mobile, 172 Vision, 4, 20, 40, 42, 43, 44 definition, 41 Vodafone, 170, 172 Volunteering, 39–40, 64, 82, 160 Volvo, 35 W Wachovia, 101 Waitrose, 126 Wal-Mart, 106, 123, 124, 133, 153, 156–158 Washington Mutual, 101 Weber, Karl, 177 Wegmans, 75, 78, 123–124, 133 Welch, Jack, 53 Welch, Suzy, 53 Wellness, 94, 122, 129, 160 Whole Foods, 75, 83, 124, 133, 161 Wikipedia, Word of mouth, 30, 147 Y Yelp, 65 Youth See Gen Y 188 YouTube, 7, 8, 94 Yunus, Muhammad, 106, 137, 141, 147 Z Zakaria, Fareed, 138 Zaltman, Gerald, 61 INDEX Zaltman, Lindsay, 61 Zaltman Metaphor Elicitation Technique (ZMET), 61–62 Zohar, Danah, 19 Zuckerberg, Mark, 58 “Marketing has lost some of its sway in recent years This provocative book tells how marketing can regain trust and influence inside and outside the organization.” —Leonard L Berry Distinguished Professor of Marketing, Texas A&M University, coauthor of Management Lessons from Mayo Clinic “Philip Kotler is again leading the way in strategic marketing with timely insight into a transformational period Marketing 3.0 makes a compelling case for the competitive benefits of tapping into the human spirit to engage consumers.” —Dennis Dunlap CEO, American Marketing Association “Marketing 3.0 has important ideas for all senior managers It clearly points the path to the values-driven human-centric firm The innovative ‘ten credos’ integrate marketing and values and provide personality and purpose to companies that practice them.” —Stephen A Greyser Richard P Chapman Professor of Business Administration, Emeritus, Harvard Business School “For too long, marketers thought customer satisfaction was the goal of marketing activities Marketing 3.0 makes the persuasive case that customer and societal welfare is the next frontier for companies Consumers are demanding more from themselves and so should smart companies.” —Nirmalya Kumar Professor of Marketing and Co-Director of the Aditya Birla India Centre at London Business School ... business practices THE COLLABORATION OF THE INNOVATOR, THE INVESTOR, AND THE PROPAGATOR Because they have different motivations, the Innovators, the Investors, and the Propagators play their own unique... people lose their jobs and the economy may potentially be hurt .21 Privacy is another issue The rise of consumer-centricity, especially the one -to- one marketing in the last few years, spurs the use... fuel-efficient planes The Innovator has the scientific capability to contribute to the environment in a way that the Investor or Propagator lack The innovations produce major impacts on the environment